Service charges on new build house

Lizbragg33

Hi all,

After some advice please. In December we purchased a new build house which we absolutely love. We have just had the first bill in for service charges for the past 3 months and next quarter. The past 3 months we have been charged £9.20 a month which is what we were told the estimated charge would be on all official paperwork from the house builder via our solicitor. However the next years bill is for near on £20 a month. We feel like we have been conned in a way as this is not what we signed up to. We live in a freehold house and can not understand this charge.

Anyone had this before? Worried each year this will just get higher and higher and we are not sure what we are paying for. Surely they can not just double the charge in one year? Surely this is protected is some way.

I've called the management company and am waiting for them to call me back.

Thanks
Liz

skintpaul

Check deeds asap- maybe a s/c for upkeep of the land the house sits in?

These shouldnt change from month to month- maybe get a balancing end of year charge though..

ask for copy of maintainence budget, and how is it shared (apportionment) per house..

davidmcn

Lizbragg33 wrote: »

We feel like we have been conned in a way as this is not what we signed up to.

An estimate's an estimate, and it was, at least initially, correct. It's only going to go up.

We live in a freehold house and can not understand this charge.

Not sure what you mean - you genuinely have no idea what the charge is, but were happy to pay it when it was £9.20? Didn't you ask your solicitor? Isn't it explained in the paperwork you had? It's almost certainly paying for the maintenance of common areas in the development.

comeandgo

We have maintenance charges for the land that is equally owned by all the properties. This charge is for grass cutting, clearing any litter, insurances, tree lopping and anything else we want them to do. We have a committee made up of house owners who liaise with our maintenance company and if their charges get too much we would look at getting another company to take over so the charges are reasonable.

neilio

I've had the exact same thing just happen to me. New build, freehold house, service charge for maintenance of common areas (gardens, footpaths, gym), completed in October. Service charge appears to be doubling from April onwards.

Not sure of your situation, but where I live the development has grown in size so there is more to maintain, but people are yet to complete on new purchases, so I'm advised that the charges should became more spread out over more residents in time.

cashbackproblems

Service charges on new builds are extortionate, I cant believe yours is so low!

alex_163163

Afraid the estimate you were given was that - an estimate.
if the maintenance of the communal land in the development has cost the maintenance company more than expected then they will put up the charge to cover it. They aren't going to take losing money.
Ask to see a breakdown of costs maybe? Although from what I have read, sometimes the costs they charge are extortionate for simple things.

neilio

There might be a Residents' Service Charge Committee you can join to have some sight and scrutiny of how the management company is spending.

[Deleted User]

Classic isnt it.

Service charges are low to get people into buying the property and then once all purchased and completed up the costs go.

neilio

BBH123 wrote: »

Classic isnt it.

Service charges are low to get people into buying the property and then once all purchased and completed up the costs go.

Not necessarily. You don't always know what the service charge estimate is until you're into the conveyancing process and already made the decision to want the property.

In my case, the estimate was for £350 per year. This going up to £700 per year. If I'd known it was £700 per year when I was buying the house, I'd still want the house.

Captain89

My estate charges will be £157 per year. I'd still buy the house at £300 but dunno how high that number would need to be for me to pull out.